Home Depot has agreed to pay $25.5 million to settle a lawsuit by California employees who complained they were not allowed to take lunch and rest breaks in violation of state law.  The Atlanta-based retail giant is the latest company to face a legal challenge based on California’s labor laws. Retailers Chico's, Abercrombie & Fitch, Costco and Guitar Center also have been sued by California employees. Sandy Springs-based UPS settled with its drivers who complained they didn't get breaks for $87 million. Wal-Mart is appealing a $172 million jury verdict in a similar case.

Stephen Holmes, a Home Depot spokesman, said the company settled because it was “the most expeditious and advantageous business decision – not because we believe there was any wrongdoing on our part.”

A Los Angeles Superior judge approved the Home Depot settlement in January. It came to light in the company's annual report to the Securities and Exchange Commission this month.

Plaintiffs' attorneys said they could not comment on details, but court documents show only California employees of Home Depot and Home Depot Expo from 2000 to 2009 are included in the settlement class. Home Depot has more than 200 stores in California, making it the retailer's largest U.S. market. (click on link to read full story)